what about the shortfall of $32? you paid for $10 borrowed $40 to get to $50 and then the total account was liquidated for $8 leaving $32 of the loan unpaid
if this is what happened you have a loss of $42 ($50 - 😎
and forgiveness of debt income of $32 ($40 - 😎 you should have gotten a 1099-c
the net is $10 which is the cash you put in.
